Post by : Meena Ariff

Current and former federal employees find themselves in a precarious position, facing possible legal repercussions stemming from overpayments associated with the flawed Phoenix payroll system introduced nearly a decade ago. Numerous individuals received no prior notice regarding these excess payments.

The government has engaged private debt collection agencies to seek repayment, leading to tax refunds, benefits, and credits being withheld in certain instances, along with accruing interest charges. The Public Service Alliance of Canada (PSAC) is urging for an immediate pause on recovery actions for overpayments surpassing the six-year statutory recovery period.

Union leader Sharon DeSousa pointed out that employees have faced extensive financial pressure and uncertainty due to the persistent issues with the Phoenix payroll system. In response, Treasury Board President Shafqat Ali acknowledged his recent awareness of the matter, promising to collaborate with union representatives to find a resolution.

Since its launch in 2016, the Phoenix system has been at the center of payroll discrepancies impacting hundreds of thousands of workers. Cumulatively, these overpayments have reached approximately $3.56 billion, with 115,000 employees currently owing around $495 million.

The Public Services and Procurement Canada (PSPC) department disclosed that while recovery efforts were initially stalled to focus on resolving payroll inaccuracies, these efforts have ramped up since 2021. Flexible repayment options are being made available for those in financial difficulty. However, PSAC insists that legal frameworks prevent the pursuit of overpayments older than six years without the consent of the affected employees.

#CNI News #Canada News #Canada Politics